Market manipulation: Ashika escapes

The Securities and Exchange Board of India ignores various kinds of manipulation by this stock...

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Share prices to have staggered upmove: Thursday Closing Report

More positives news needed to sustain gain. Watch for a close above 5,200 for a possible target of 5,250

The small reversal till 5,270 is expected to be a slow one. The Nifty tried to go above yesterday's high but it fell on lower volumes today.

The domestic market is taking cues from the global arena in the absence of any domestic triggers. After decent gains yesterday, the market opened lower today, tracking the weak Asian indices. The Nifty opened 33 points lower at 5,128 and the Sensex fell 74 points to resume trade at 17,057. The IT sector was the biggest loser in early trade.

However, select buying pushed the indices into positive terrain within the first 15 minutes. But the gains were short-lived as the benchmarks soon succumbed to selling pressure taking the indices to the day's lows. At the lows, the Nifty fell to 5,121 and the Sensex to 17,022. Buying interest, once again, supported the benchmarks in their recovery into the green, but with weekly food inflation figures coming at a four-and-half month high for the week ended 30th July, the market witnessed a marginal drop.

A positive opening of the key European bourses lifted the spirits once again, helping the indices rise to their intraday highs in noon trade. At the highs, the Nifty rose to 5,185 and the Sensex touched 17,208. But comments from commerce secretary Rahul Khullar that uncertainties in the US and Europe would dent export growth, put pressure on the market, resulting in the indices trading sideways for the rest of the session. The Nifty closed down 23 points at 5,138 and the Sensex fell 71 points to finish trade at 17,059.

The advance-decline ratio on the National Stock Exchange was 791:941.

Among the broader indices, the BSE Mid-cap index shed 0.16% and the BSE Small-cap index lost 0.19%.

In the sectoral space, the BSE Fast Moving Consumer Goods index gained 0.03% while the BSE Oil & Gas settled unchanged. The top losers were BSE Bankex (down 1.04%, BSE TECk, BSE Realty (down 0.86% each), BSE Consumer Durables (down 0.84%) and BSE Capital Goods (down 0.69%).

Major Sensex gainers were HDFC (up 2.34%), NTPC (up 1.51%), Coal India (up 1.17%), Hindalco Industries (up 1.06%) and ITC (up 0.48%). Tata Power (down 4.31%), Maruti Suzuki (down 2.52%), Jindal Steel (down 2.43%), Bharti Airtel (down 2.42%) and ICICI Bank (down 2.20%) settled at the bottom of the index.

The Nifty gainers were led by HDFC (up 2.68%), Reliance Infrastructure (up 2.65%), Reliance Capital (up 2.42%), Kotak Bank (up 2.16%) and NTPC (up 1.31%). The main losers on the benchmark were Tata Power (down 4.60%), Axis Bank (down 3.05%), Maruti Suzuki (down 2.95%),  Bharti Airtel (down 2.91%) and BHEL (down 2.27%).

Markets in Asia recovered from their early loses to end mixed on fears of the European debt crisis spreading following a threat to France's debt rating from rating agencies.

Meanwhile, Japan's core machinery orders jumped 7.7% in June from a 3% growth in the previous month, office data showed. The increase implies that the economy has made a progress after the March earthquake; however, global events are likely to see a slowdown in orders, going forward.

The Shanghai Composite surged 1.27%, the Jakarta Composite added 0.15% and the Seoul Composite gained 0.62%. On the other hand, the Hang Seng declined 0.95%, the KLSE Composite fell 0.27%, the Nikkei 225 slipped 0.63%, the Straits Times tanked 0.88% and the Taiwan Weighted shed 0.22%.

Back home, foreign institutional investors were net buyers of stocks worth Rs152.87 crore on Wednesday. Similarly, domestic institutional investors were buyers of shares worth Rs289.95 crore.

Reliance Infrastructure's net profit after tax for the quarter ended 30 June 2011 surged 74.82% at Rs430.49 crore compared to Rs246.25 crore for the corresponding quarter last year. Total income increased 59.12% to Rs 3,769.97 crore for the first quarter of the current fiscal from Rs2,369.43 crore for the same quarter last year. The stock climbed 2.65% to close at Rs484.25 on the NSE.

Hotel Leelaventure, a five-star hotel chain, is set to sell its property in Kovalam, Kerala, for Rs500 crore. The move is seen as a debt-reduction measure. The property, Leela Resorts Kovalam, is being sold to non-resident Indian industrialist Ravi Pillai. The company will subsequently enter into a management pact with Mr Pillai to handle the property for 30 years. The scrip tumbled 6.11% to Rs43 on the NSE.

Tata Global Beverages' profit after tax for the June 2011 quarter zoomed 355.02% to Rs 164.49 crore against Rs36.15 crore in the corresponding quarter last year. Total income increased 14.50% to Rs 525.92 crore for the quarter under review from Rs 459.31 crore for the same quarter last year. The stock declined 3.61% to Rs102.80 on the NSE today.


IndiaFirst Health ULIP: A technological approach for cashless approval

At a time when the ULIP market is in turmoil, IndiaFirst has launched its health ULIP. Mediclaim cashless approval is normally a huge problem, especially with government insurers. Will IndiaFirst’s tech-savvy approach for cashless approval work without the policyholder having to make a call or send a fax or email to the TPA?

IndiaFirst Health ULIP-Money Back health insurance plan is a long term savings-cum-indemnity health insurance plan for 5 or 10 years. There will be a 4-year waiting period for pre-existing diseases (PED) just like a mediclaim policy. The unique feature is its tech-savvy approach to the major pain point in the mediclaim- cashless approval process. Policyholders have found difficulty in communication with government insurers' Third Party Administrators (TPAs) via phone, fax or email to get cashless approval.

The Money Back health insurance plan will offer cashless facilities at 4,956 network hospitals. According to Dr Nandagopal, chief executive officer and managing director of IndiaFirst, "The customer need not go to the TPA or send a fax. Once he swipes the card, the authorisation immediately happens. Again when he gets discharged from the hospital, he would need to swipe it and the hospital gets the money through the MasterCard service network, bypassing the entire documentation that is otherwise required and makes the whole process hassle-free."

According to a company official, "The TPA will get informed about the policyholder's arrival in the hospital after the card is swiped through the same machine which is used for credit/debit cards. The TPA will then get in touch with the hospital to find out details of the medical treatment and then approve the cashless claim in case the policyholder is eligible for it."

The minimum premium payout of the customer would be Rs10,000 for a regular premium or Rs30,000 for single premium. The health insurance cover would be a minimum of Rs1.50 lakh and a maximum of Rs10 lakh. The regular premium option has a policy term of 10 years, while the single premium option has a policy term of 5 years.

It offers a family floater option to include spouse, maximum of two children and maximum two parents of primary life assured. The maximum age at end of policy term is 70 years for primary life assured, 75 years for spouse & parents and 25 years for children.

Part of the premium goes towards morbidity charges to provide health benefit. The yearly morbidity charge for persons between 26 to 30 years for Rs5 lakh sum assured will be Rs5,941. There are no mortality charges as there is no life cover. The remaining part of the premium is invested in one or more of five fund options with varying percent of equity, debt and money market exposure. The performance of the fund option will be reflected in the fund value of the policy.


  •  Under Section 80D you can enjoy tax benefits on the morbidity charge you pay and also get a benefit under Section 80C for premium contribution allocated towards your market linked fund.
  •  The tech approach for cashless claims should be of major use, if it is free of all hassles.
  •  A holder can create health savings fund with dual approach of health insurance plus savings.


  •  The cost of health cover will be guaranteed for the first year and thereafter will be reviewed every year. This is similar to mediclaim where premiums can increase every year.
  • High charges—The premium allocation and policy administration charge for regular premium option is expensive and it will be applied on total premium (which includes morbidity charges). Single premium option is relatively less expensive, but it only covers a five-year policy term.
  •  The maximum cover during the plan term is restricted to 5 times the annual sum assured. This is the lifetime limit of the policy. It means that if you opt for a 10-year plan and exhaust 5 times the annual sum assured in claims, the policy terminates and fund value will be paid immediately.
  •  Out-of-network hospitals will entail co-pay of 20%. The insurer will pay only 80% of the expenses.

Health ULIPs are a relatively new concept. When Moneylife asked the company official about the reason for not launching standalone health insurance product, he replied, "Our expertise is in wealth management and at this time we want to have a product with combination of health insurance and savings. We have worked for over a year on this product as it needed ties with hospitals, TPAs and so on."

This health ULIP concept has its supporters. Ashvin Parekh, partner and national leader-Global Financial Services at Ernst & Young Pvt Ltd told Moneylife in an interview earlier this year, "Health indemnity too will gain importance, especially if it evolves into a managed care. Health ULIP will be a longer-term product than the annual renewal for mediclaim."

IndiaFirst recently launched 'LifeStore' which offers differentiation with a technology thrust to help aspects like increasing financial literacy, simplicity of product details, transparency of detailed investment performance and an online customer service experience similar to online banking. This 'Do-It-Yourself' website for understanding and buying insurance is certainly a step towards empowering customers and taking insurance benefits literally to their homes.




5 years ago


As you said, this is an expensive product not only w.r.t the direct charges associated but also from the view of actual benefits which you can get out of a health plan. My views on by blog below:

s vasu

5 years ago

india first health ulip how to calclulate the premium please send me

Vikas Gupta

5 years ago

Once again very good information.

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